Securities code: 688225 securities abbreviation: CICA security
AsiaInfo Security Technology Co., Ltd
Record of investor relations activities
No.: 2022016
√ research on specific objects \uf0a3 analyst meeting
Investor relations \uf0a3 media interview \uf0a3 performance briefing
Activity category \uf0a3 press conference \uf0a3 roadshow activity
\uf0a3 site visit \uf0a3 one-to-one communication
\uf0a3 others (please describe other activities in words)
Name of participant
And name of personnel Huatai Securities Co.Ltd(601688) fan Rui
(in no order) Qian Shixiang and Cai Longwen of Changjiang pension
Time: 15:00, March 28, 2022
Place online communication
Investment and customs staff of the office of the board of directors of listed companies
Name of receptionist
1、 Company profile
The state attaches great importance to network security. In recent years, the rapid launch of the two laws, Tesla and didi have also given birth to a large number of new hot opportunities. All kinds of blackmail, data leakage, mining and other events, including recent local geographical conflicts, will stimulate profound changes in the network security industry and have a far-reaching impact. It is the general trend for the network security industry to develop into a new generation of national defense industry investor relations activity industry. The data connection and endpoint connection brought by 5g, AI and other new technologies show an increase in the number of levels of introduction. The digital system has become a new production network and faces more security challenges. Therefore, the traditional “fence” border defense idea is unsustainable. It is necessary to build the “overall defense” idea, link all security equipment, data-driven security, and realize monitoring, analysis, response Overall defense system for disposal. In the long run, the future growth space of network security is large enough. As one of the leading manufacturers, AsiaInfo security inherited the nearly 30-year experience in network construction of AsiaInfo and integrated the business of trend technology in China in 2015. In the past few years, AsiaInfo security has made great progress and maintained its first position in the operator industry and its first position in the terminal industry
The market ranking and reputation of security, virtual machine security and identity security are good, and it was rated as the first in China’s network software in 2019. In terms of track layout, the selection space is large enough, the height increases, and has technical advantages and market reputation in relevant tracks. These tracks will become the main source of rapid growth of CICA security in the next three years. From cloud based access and sub network security, we should build an overall security solution based on the idea of cloud based access and sub network security, and support the overall security of data from the cloud based access and sub network security. Advantages of CICA security: a network security software company that understands the Internet and cloud. On the one hand, the network is not only the internal network of the enterprise, but also the large network of operators, because the backbone networks of the whole society are carried by operators. CICA security has a large number of system deployment in the core network, access network and support network of operators, including Internet access authentication, DNS and a series of network capabilities and data, which will be of great help to the whole network security. On the other hand, AsiaInfo security has inherited the technical and talent advantages of trend technology and carried out several rounds of iterations on its products after absorption. The product capacity has exceeded the absorbed version and is in a relatively advanced position in the field of cloud host protection in China. In the future, AsiaInfo security will continue to invest in research and development and maintain its leading position in the industry. Overall, our core advantage products are not chimney deployment, but can implement product linkage and follow the core idea of platform. All products are virtualized and deployed, and can be arranged. At the same time, we can get through all the data and instructions to realize automatic linkage disposal. Based on data aggregation, we can intelligently analyze the strategy of each product and issue it intelligently. This is our core strategy of all cloud, all connection and all intelligent platform. 2、 Q & a session: is it possible to make a simple classification of AsiaInfo security products? A: if classified, there are two types of CICA security products: one is our products with strong characteristics in the operator industry, such as DNS, access security, identity security, etc; The second category is applicable to a wide range of terminal security, virtual machine security, apt protection, platforms and services in various industries. Our products will have layout and card position in cloud, network and terminal. Q: is identity security a pure software form? Is there a hardware deployment? A: it is a pure software form and does not require hardware deployment. At present, identity security products are mainly solutions, which need to be closely combined with business and it systems, and have customized needs.
Q: is load balancing required for identity authentication? Does it compete with manufacturers like Koal Software Co.Ltd(603232) ? A: generally, large projects need load balancing Koal Software Co.Ltd(603232) such manufacturers mainly do identity authentication based on Ca, but also other authentication based on password, biological sign and other methods. The authentication methods and forms are different. The advantageous product of CICA security is Iam, which is from account management, authentication, authorization and security audit. Authentication is a link of authentication. Iam should be combined with all applications and it facilities of the enterprise. For example, Iam made by operators will connect with hundreds of systems of their suppliers and it infrastructure such as hosts, middleware and databases. Therefore, we have little competition with specialized manufacturers focusing on authentication. Q: what is the historical evolution of the relatively high proportion of revenue on the operator side? A: AsiaInfo security originated from the original AsiaInfo network security business group. AsiaInfo technology is a very large service enterprise among operators’ suppliers. It mainly makes BSS and OSS systems for operators and has been deeply cultivated in the operator industry for many years. Therefore, AsiaInfo security inherits the advantages and capabilities of AsiaInfo technology on the operator side in the historical evolution. At present, AsiaInfo security and AsiaInfo technology operate independently. Q: what are the product forms of CICA security? A: there are two types of our products: one is standardized products, and the gross profit margin of the standard products is about 75%. The second is the solution category, which accounts for a slightly higher proportion of revenue in our two product systems, accounting for about 65%. The gross profit margin of the solution category is slightly lower, about 50%, mainly because the project system needs to invest some labor costs. With the supplement of sales capacity, expand the market outside the operator through the core standard products. As the income of standard products will increase rapidly in the future, it will drive the overall gross profit margin to rise. Q: what is the sales model? What is the proportion of direct selling and distribution? A: there are both direct sales and channels. We have established benchmark customers in some industries. Major customers are mainly through direct sales. In addition, we cover customers in small and medium-sized industries through channels. In 2020, direct sales revenue accounted for 75% and channels accounted for 25%. Q: what is the demand space of situational awareness platform? Will it grow faster in the future? A: the situational awareness platform is required to be able to link products, analyze data, and make response, judgment and disposal. Therefore, the safety construction of customers has reached a certain level
Under the condition that security products are relatively complete, we will basically consider using security platforms such as situational awareness to aggregate security capabilities. The income of state products has increased rapidly in the past two years, and there is also a good growth in 2021.
Annex list (if any) none
Date: March 28, 2022
